Analysis: Insurance scheme for farmers may not move forward

Sirikanya Tansakul, deputy leader of the Move Forward Party and head of the party's economic team, said the appropriate time to implement an income-guarantee programme for farmers is when prices are rising.

The programme was an initiative of the Democrat Party under the leadership of Jurin Laksanawisit, who was commerce minister under outgoing Prime Minister General Prayut Chan-o-cha.

This programme supported farmers and plantation owners by compensating them if market prices of the five crops fell beneath their guaranteed prices.

The programme saw 218.16 billion baht transferred to 8.13 million households over the past four years. However, this amount was less than the programme’s allocated budget of 298.68 billion baht.

The agricultural income insurance project is considered successful by most analysts, who note it cost less than forecast.

In its first year, growers of all five crops received insurance, but market prices rose and as a result payments from the programme fell in subsequent years.

The market price of palm oil rose above the insured price after the first year, and no payments were made to plantation owners or farmers during the subsequent three years.

Udom Srisomsong, deputy director general of the Department of Internal Trade, said the department has prepared support measures for farmers.

These include helping farmers and farming groups store surplus produce so sales can be delayed till prices rise, promoting exports when global market prices are highest, and supporting direct purchasing of agricultural products from farmers without having to go through middlemen.